Funny you mention this one, I just bought Apr $42 TSEM calls today.
I don't follow this one closely, but I seem to recall that they were expecting the regulatory approval (or at least some response) any day now.
I think if China does not give regulatory approval, then perhaps the combined entity may not be able to sell product in China, something like that is the potential penalty. I think the only thing China is supposed to look for is whether the acquisition may reduce competition, anti trust stuff. But the geopolitics around the semiconductor global industry is shifting a lot. Who knows what the Chinese decision will be, whether it will be on time, or much of anything about it. I don't know.
If this goes through with Chinese approval, I think SIMO will jump in response. SIMO is even more complicated for China to approve (since it's in Taiwan and the buyer is USA), but this TSEM-INTC deal is the first signal. If TSEM gets rejected by China, I think SIMO hasn't got a chance.
I'm not super up to speed on any of it though, but I think it's something like China has one year to respond to the INTC-TSEM regulatory filing, and the year is up fairly soon. |
